Chinese EV-Makers More Eager to Build Factories in Europe Following Anti-Subsidy Probe, Survey Finds

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Chinese new-energy vehicle (NEV) manufacturers are more eager to build factories in Europe than before, a survey showed, as they remain optimistic about their long-term prospects in the region despite current headwinds.

However, they also admitted that the EU’s anti-subsidy investigation into Chinese EVs, which earlier this month resulted in the levying of provisional tariffs on EV imports, has hurt their sales and undermined their confidence in the European market, the survey said.

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Chinese NEV manufacturers are optimistic about long-term prospects in Europe but face setbacks due to the EU's anti-subsidy probe and provisional tariffs of up to 38.1% on EV imports from China.
Despite reduced sales and confidence, 67% still view Europe as key for global expansion and 64% report positive changes in five-year plans for European factory builds.
Investment in European NEV facilities totaled €4.7 billion in 2023, making up 70% of Chinese direct investment in the region, as per a report by Rhodium Group LLC and the Mercator Institute.

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Who’s Who

BYD Co. Ltd.: BYD Co. Ltd. is a Chinese NEV manufacturer that has been subject to the EU's anti-subsidy investigation. Despite facing provisional tariffs, BYD is increasing its investment in European assembly facilities to mitigate the impact. The company is actively involved in expanding its operations in Europe, as part of a broader trend of Chinese NEV-makers investing heavily in the region.

Geely Automobile Holdings Ltd.: Geely Automobile Holdings Ltd. is one of the Chinese carmakers formally notified by the EU of new provisional tariffs on battery-electric vehicles shipped from China. It was picked as a subject for the EU's anti-subsidy investigation, which suggests state subsidies are enabling Chinese EV makers to undercut EU rivals.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. captured 5.9% of Europe's all-electric vehicle market in 2023, leading among Chinese peers. It faces the hardest hit from the EU's new provisional tariffs, which will increase by 38.1% on top of the existing 10%. To mitigate tariffs' impact, SAIC is boosting investment in European assembly facilities.

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